Final Results

RNS Number:4981S
Countryside Properties PLC
26 November 2003





                                       26th November 2003

               COUNTRYSIDE PROPERTIES PLC
        ("Countryside Properties" or "the Group")

  Preliminary Results for the year ended 30th September
                          2003

Countryside  Properties PLC, the specialist developer  of
sustainable  communities, announces  Preliminary  Results
for the year ended 30th September 2003.

*    Pre-tax profit in line with expectations, 5% up at a
     record #36.1m (2002 - #34.3m), on turnover 8% lower at
     #418.6m (2002 - #456.1m).

*    Operating   margins  from  the  Group's  development
     activities improved to 13.4% (2002 - 11.0%).

*    Earnings  per share increased by 6%  to  33.6p  per
     share (2002 - 31.6p).

*    Total dividend increased by 11% to 7.75p per  share
    (2002 - 7.0p).

*    These  results  were achieved in  generally  quieter
     conditions in the Group's principal markets than  in
     recent years

     - As  widely reported, housing markets in  parts  of
       London and the South East, particularly for higher
       priced  homes, experienced a slow down during  the
       year.
     - Trading  in  the  North West, which  enjoyed  much
       better market conditions, was good.

*    The  land  market  continues to be strong  and  land
     sales during the year of #69.0m (2002 - #59.8m) again
     made a good contribution to results. Land sales play an
     integral role in optimising Group returns and balancing
     its risk profile.

*    The   Group   maintains   one   of   the   strongest
     landholdings in the housebuilding sector;  year  end
     landholdings with planning permission, at 5,400 plots
     (2002 - 4,900 plots) were the highest they have ever
     been.  In addition the Group has an extensive strategic
     landbank.

     Much  of  the land in the Group's control is located
     in  the  Thames  Gateway area and the M11  corridor,
     which  are  both areas identified by Government  for
     significant   growth   and  in   which   Countryside
     Properties is one of the largest developers.

*    The Group's prospects remain excellent.

Alan Cherry, Chairman, commented:

"Countryside  Properties  is  an  established   developer
specialising  in the creation of sustainable  communities
and   in  urban  and  rural  regeneration.   Our  primary
objective  is  to  optimise returns from our  substantial
land   portfolio   and  skills  base,  enabling   us   to
consistently  deliver  growth in earnings  per  share  in
varying market conditions.

"The  Board is confident that the current year will  show
improved results and further progress for the Group, with
results  as  last year particularly weighted towards  the
second half.  Current trading across the Group is in line
with the Board's expectations.

"Countryside  Properties' longer  term  prospects  remain
excellent.    Our  skills  base  and  experience   as   a
specialist  developer, coupled with our outstanding  land
bank  in  the  areas  identified by  the  Government  for
significant growth, securely positions the Group to  take
advantage of the exciting opportunities that lie ahead."

                        - ends -

For further information, please contact:

Countryside Properties PLC        on 26/11/2003: 020 7067 0700
Graham Cherry, Chief Executive     thereafter on: 01277 260000
Wendy Colgrave, Finance Director

Weber Shandwick Square Mile                      020 7067 0700
Nick Oborne / Louise Robson / Sally Lewis






                                       26th November 2003


               COUNTRYSIDE PROPERTIES PLC
        ("Countryside Properties" or "The Group")

  Preliminary Results for the year ended 30th September
                          2003

Countryside   Properties  is  an  established   developer
specialising  in the creation of sustainable  communities
and   in  urban  and  rural  regeneration.   Our  primary
objective  is  to  optimise returns from our  substantial
land   portfolio   and  skills  base,  enabling   us   to
consistently  deliver  growth in earnings  per  share  in
varying market conditions.

Results

I  am pleased to report that, in generally quieter market
conditions than we have experienced in recent years,  the
Group  achieved  another year of record  profit.   Profit
before  tax  increased 5% to #36.1m (2002  -  #34.3m)  on
turnover 8% lower at #418.6m (2002 - #456.1m).

Earnings per share increased 6% to 33.6p per share  (2002
- 31.6p).

Shareholders' funds increased by 15% to #151.9m  (2002  -
#131.9m), equating to net asset value per share  of  192p
(2002  - 168p). Bank loans and overdrafts ended the  year
at  #93.3m (2002 - #74.4m), representing gearing  of  61%
(2002 - 56%).

Return  on shareholders' funds was 25.4% (2002  -  28.0%)
and  return  on  total  capital employed  18.2%  (2002  -
20.8%).  These movements reflect increased investment  in
land  holdings and work in progress, which underpins  the
future growth and prosperity of the Group.

Dividend

In  the light of these results and our confidence in  the
Group's  prospects,  the Board is  recommending  a  final
dividend  of  5.13p  per  share  (2002  -  4.62p)  which,
together  with the interim dividend of 2.62p  per  share,
amounts  to  a total dividend for the year of  7.75p  per
share  - an increase of 11% over the 7.0p per share  paid
in  the  previous year.  The total dividend proposed  for
the  year will be covered 4.3 times by earnings  (2002  -
4.5 times).

It  is  proposed  that  the final  dividend  be  paid  to
shareholders  on  8th  April 2004 in  respect  of  shares
registered  in  their names at the close of  business  on
19th March 2004.

Trading Analysis

The  results  for  the year, in line  with  expectations,
reflect  the  benefits the Group enjoys  from  its  broad
range  of  development  skills  and  expertise  and   the
assembly and promotion of its excellent landbank.

Development Activities
Turnover  from all of our development activities totalled
#307.8m (2002 - #358.7m).

As  widely  reported, housing markets in parts of  London
and  the  South  East,  where  selling  prices  for  more
expensive  houses have fallen, experienced  a  slow  down
during the year. This, coupled with building delays on  a
small   number  of  projects,  resulted  in  fewer  sales
completions than anticipated. Trading in the North  West,
which  enjoyed much better market conditions,  was  good.
During  the year the Group completed the sale of 812  new
homes  (2002 - 986), including its share of  a  total  of
312  new  homes  (2002 - 123) sold  on  behalf  of  joint
ventures.   Turnover from private housebuilding  totalled
#222.2m  (2002 - #268.2m).  The average selling price  of
all new homes sold was #288,000 (2002 - #279,000).

Commercial   property  transactions   during   the   year
generated  turnover of #16.6m (2002 -  #30.7m).  Most  of
this  activity comprised the commercial content of  large
mixed use projects.

The  land  market continues to be strong and  land  sales
during  the year of #69.0m (2002 - #59.8m) again  made  a
good contribution to results.  With our proven ability to
acquire   and  successfully  promote  land  through   the
planning process, and to  subsequently add material value
to  land as part of our development approach, land  sales
will  continue  to  play an integral role  in  optimising
returns  and balancing our risk profile.  Land sales  are
usually  made  to other developers seeking  opportunities
otherwise unavailable to them and to our joint ventures.

Irrespective  of land sales, our year end  land  holdings
with  planning permission were the highest they have ever
been.

Operating   profits  from  all  the  Group's  development
activities  rose  to  #41.1m (2002 - #39.4m).   Operating
margins improved to 13.4% as compared to 11.0% last year,
reflecting  the  mix  of business  completed  during  the
period.   While  we  expect  margins  to  remain  broadly
similar in the current year, we are confident that higher
levels of activity, continued focus on reducing our  cost
and  overhead  base, increased use of  experienced  third
party main contractors on fixed price agreements and  our
decision   in  2001  to  raise  hurdle  rates   on   land
acquisition  will  result  in  enhanced  margins  in  the
future.

Design and Build Contracting
Turnover from our Design and Build contracting operations
totalled #110.8m (2002 - #97.4m) with 941 new homes (2002
-  807)  being  completed  for housing  associations  and
others.   Operating profits from this  activity  rose  to
#3.3m (2002 - #2.6m) with operating margins improving  to
2.9% (2002 - 2.7%).

With our leading position in this field we continue to be
well   placed  to  take  advantage  of  the  considerable
opportunities now presenting themselves as the Government
seeks  to  increase the supply of affordable housing  and
encourages the expansion of estate renewal programmes.

Our design and build activities are a very important part
of the Group's integrated approach to mixed-use and mixed-
tenure  development.   We have a  unique  place  in  this
market  which  gives the Group significant advantages  in
securing new development opportunities.

The current order book for this work totals #243m (2002 -
#136m) of committed contracts, with a further #283m (2002
- #232m) agreed subject to contract, which will enable us
to  increase output and profitability from this  activity
over the next few years.

The Market

While the housing markets in our areas of operation  have
shown  some  improvement  in recent  months  they  remain
generally slow in London and the South East, particularly
for higher priced homes. The market is stronger at prices
below #300,000.

Demand  from  occupiers for commercial  property  remains
subdued.  We  foresaw these conditions  and  the  Group's
exposure to this market is limited.

The Group has during the last three months experienced  a
similar  level of enquiries to those received during  the
comparable period a year ago, and sales reservations  are
up  6%.  Forward sales of the Group's new homes by  value
are currently in line with this time last year. It is too
early  to gauge the impact of the recent rise in interest
rates,  but to date we have seen little impact  on  home-
buyers' confidence.

We  remain confident that the long term outlook  for  the
housing  market is very positive.  Underlying demand  for
new homes, particularly in London and the South-East,  is
set  to  outstrip supply for many years to come,  with  a
consequent  need  to  increase the number  of  new  homes
built.

Joint Ventures

Joint  ventures are an important part of our  operational
profile,  allowing  the  Group to participate  in  large,
capital intensive projects, which increases overall Group
returns while maintaining a balanced risk exposure.

In   addition   to  our  joint  ventures   with   English
Partnerships,  the  South  East  of  England  Development
Agency,  Taylor  Woodrow, British Land, GE  Real  Estate,
Liberty   Property   Trust  and   Citigroup   Alternative
Investments,  the Group has recently entered  into  joint
ventures  with  Quintain Estates and Apollo International
Real Estate Fund.

The joint venture with Quintain is to develop a prominent
9.4  acre brownfield site in Colliers Wood, London.  This
major  new  mixed-use development will include  2  and  3
bedroom  apartments,  a  hotel  pre-let  to  Scottish   &
Newcastle  (Premier  Lodge), a large health  and  fitness
centre  and  two  restaurants.   Construction  work   has
already  started and the development is  expected  to  be
completed in Summer 2006.

The  joint  venture  with  Apollo  is  to  undertake  the
development of a new residential development  in  Central
Cambridge.   The  24-acre site is located  close  to  the
Cambridge University Botanical Gardens.  The project will
comprise  378  new houses and apartments,  including  114
affordable   homes   for  rent  and   shared   ownership.
Construction  has  already  commenced,  with   completion
expected early 2007.

Land Holdings

Our  leading  reputation  and  proven  abilities  in  the
development  of sustainable, large scale  mixed  use  and
mixed  tenure projects, in line with Government  criteria
gives  us  a  strong  competitive advantage  in  securing
opportunities to generate profitable growth and  underpin
our  future. As a result we are able to bring  forward  a
steady  flow  of major projects, which currently  include
developments  in London, Liverpool, Manchester,  Croydon,
Guildford,   Maidstone   and   Chelmsford,   all    major
conurbations or leading regional centres.

We  maintain  a  substantial land bank  either  owned  or
controlled,  through  options and conditional  contracts,
with  the  potential for some 22,000 (2002 - 22,700)  new
homes  including  5,400  (2002  -  4,900)  with  planning
permission,  and  16,600  (2002  -  17,800)  subject   to
planning  permission.  A number of these  sites  are  for
mixed-use  development with the potential for commercial,
retail,  leisure  and  community uses,  as  well  as  new
housing. Our land stocks include potential for nearly 1.5
million  sq  ft  of  accommodation  for  commercial   and
community uses.

Much of the land in the Group's control is located in the
Thames Gateway area and the M11 corridor, which are  both
areas   identified  by  the  Government  for  significant
growth.   Countryside Properties is one  of  the  largest
developers in both of these regions.

Prospects

The  Board  is confident that the current year will  show
improved results and further progress for the Group, with
results  as  last year particularly weighted towards  the
second half.  Current trading across the Group is in line
with the Board's expectations.

Countryside  Properties'  longer  term  prospects  remain
excellent.    Our  skills  base  and  experience   as   a
specialist  developer, coupled with our outstanding  land
bank  in  the  areas  identified by  the  Government  for
significant growth, securely positions the Group to  take
advantage of the exciting opportunities that lie ahead.




ALAN CHERRY CBE DL
Chairman
25th November 2003


For further information, please contact:

Countryside Properties PLC        on 26/11/2003: 020 7067 0700
Graham Cherry, Chief Executive     thereafter on: 01277 260000
Wendy Colgrave, Finance Director

Weber Shandwick Square Mile                      020 7067 0700
Nick Oborne / Louise Robson / Sally Lewis



Countryside Properties PLC
Consolidated Profit and Loss Account
For the year ended 30 September 2003

                                                2003       2002

                                               #'000      #'000
--------------------------------------------------------------------
Turnover: Group and share of joint ventures  418,629    456,081
less share of joint ventures' turnover       (32,515)   (18,317)
--------------------------------------------------------------------
Group turnover                               386,114    437,764
Cost of sales                               (316,129)  (368,060)
--------------------------------------------------------------------
Gross profit                                  69,985     69,704

Administrative expenses                      (30,600)   (30,789)
--------------------------------------------------------------------
Group operating profit                        39,385     38,915

Share of operating profit of joint ventures    4,986      3,100
--------------------------------------------------------------------
Operating profit including share of
joint ventures                                44,371     42,015

Interest payable (net)                        (8,315)    (7,702)
--------------------------------------------------------------------
Profit on ordinary activities
before taxation                               36,056     34,313

Taxation                                     (10,942)   (10,538)
--------------------------------------------------------------------
Profit on ordinary activities after
taxation                                      25,114     23,775

Dividends                                     (5,805)    (5,223)
--------------------------------------------------------------------
Retained profit for the financial
year                                          19,309     18,552
====================================================================
Earnings per 25p share                          33.6p      31.6p

Diluted earnings per 25p share                  31.8p      30.1p
====================================================================

There  are  no  recognised gains or losses for  the  year
other  than  those shown in the Profit and  Loss  Account
above.


Countryside Properties PLC
Consolidated Balance Sheet
As at 30 September 2003

                                                           2003            2002
                                                     #'000     #'000  #'000     #'000
----------------------------------------------------------------------------------------
Fixed assets
Tangible assets                                                3,922            4,590
Investments
  Investments in joint ventures
     Share of gross assets                         102,017           69,658
     Share of gross liabilities
                    - borrowings                   (29,137)          (5,672)
                    - other creditors  1 year     (10,394)          (2,331)
----------------------------------------------------------------------------------------
                                                     7,918            5,477
Other investments                                      475              562
                                                               8,393            6,039
----------------------------------------------------------------------------------------
                                                              12,315           10,629
Current assets
Stocks                                             319,778          267,824
Debtors                                             99,189           73,315
Cash at bank and in hand                                18               18
----------------------------------------------------------------------------------------
                                                   418,985          341,157
Current liabilities
Creditors: due within one year                    (261,162)        (194,109)
----------------------------------------------------------------------------------------

Net current assets                                           157,823          147,048
----------------------------------------------------------------------------------------

Total assets less current liabilities                        170,138          157,677
Creditors: due after more than one year                      (18,263)         (25,800)
----------------------------------------------------------------------------------------
                                                             151,875          131,877
========================================================================================

Capital and reserves
Called up share capital                                       19,773           19,633
Reserves
Share premium account                                         29,833           29,284
Capital reserves                                                  56               56
Profit and loss account                                      102,213           82,904
----------------------------------------------------------------------------------------

Total equity shareholders' funds                             151,875          131,877
========================================================================================


Countryside Properties PLC
Analysis by Activity


                                                2003               2002

                                         #'000     #'000     #'000      #'000
----------------------------------------------------------------------------------
Turnover
Development
    -  Group                           275,291             340,346
    -  Share of Joint Ventures          32,515              18,317
----------------------------------------------------------------------------------
                                                 307,806              358,663
Design & Build Contracting

    -  Group                           110,823              97,418
    -  Share of Joint Ventures               -                   -
----------------------------------------------------------------------------------
                                                 110,823               97,418
----------------------------------------------------------------------------------
                                                 418,629              456,081
----------------------------------------------------------------------------------

Operating profit
Development
    -  Group                            36,146              36,276
    -  Share of Joint Ventures           4,986               3,100
----------------------------------------------------------------------------------
                                                  41,132               39,376
Design & Build Contracting
    -  Group                             3,239               2,639
    -  Share of Joint Ventures               -                   -
----------------------------------------------------------------------------------
                                                   3,239                2,639
----------------------------------------------------------------------------------
                                                  44,371               42,015
----------------------------------------------------------------------------------


Note
The preliminary announcement is an excerpt from the audited accounts
dated  25th  November 2003 and does not constitute the statutory
financial statements of the Group. The auditors' report  thereon
was  unqualified. The accounts are expected to be  issued
to  shareholders in January 2004 and will be  filed  with
the  Registrar of Companies. Comparative figures for  the
year ended 30th September 2002 are taken from the Group's
published  accounts for the year then ended,  which  have
been delivered to the Registrar of Companies.  The report
of the auditors on those accounts was unqualified.

Countryside Properties PLC
Summarised Consolidated Cash Flow Statement
For the year ended 30 September 2003

                                                           2003            2002
                                                     #'000     #'000  #'000     #'000
----------------------------------------------------------------------------------------

Net cash inflow from operating activities                      2,056           41,032
Dividends received from joint ventures                         1,111              641
Returns on investments and servicing of finance
    Interest paid to finance development activities           (7,225)          (7,210)
Taxation
     UK corporation tax paid                                  (9,190)          (9,701)
Capital expenditure and financial investment
     Purchase of tangible fixed assets                (666)            (955)
     Sale of tangible fixed assets                       -               49
     Advances to joint ventures(net)                  (805)         (14,761)
     Equity share scheme loans repaid                   87               56
----------------------------------------------------------------------------------------
                                                              (1,384)         (15,611)
Acquisitions and disposals
Repayment of/(Investment in) share capital
of joint ventures                                                495           (2,390)
Equity dividends paid                                         (5,414)          (4,899)
----------------------------------------------------------------------------------------
Net cash (outflow)/inflow before financing                   (19,551)           1,862
Financing
     Issue of Ordinary share capital                             689                -
----------------------------------------------------------------------------------------
(Decrease)/Increase in cash                                  (18,862)           1,862
========================================================================================


Reconciliation of operating profit
to net cash inflow from operating activities                   2003            2002

                                                              #'000           #'000
----------------------------------------------------------------------------------------
Group operating profit                                       39,385          38,915
Depreciation                                                  1,334           1,290
(Profit) on fixed asset disposals                                 -             (15)
Write down of investment in joint venture                         -           1,968
(Increase)/Decrease in stock                                (51,954)         21,899
(Increase) in debtors                                       (25,190)        (10,706)
Increase/(Decrease) in creditors                             38,481         (12,319)
----------------------------------------------------------------------------------------
Net cash inflow from operating activities                     2,056          41,032
----------------------------------------------------------------------------------------



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